FTSE 100 Live: Inflation eases more than expected ahead of rate decision

Good morning and welcome back to the CityAM liveblog.

We’ve had the latest inflation data this morning, which has shown the consumer price index (CPI) rose by 3.2 per cent in the 12 months to November 2025. This eased from 3.6 per cent in October 2025.

It also beats figures pencilled in by economists, who expected price growth to remain much more stubborn at 3.5 per cent.

But the figure still stands above the two per cent target laid about by the UK central bank.

It’s another piece of crucial data ahead of the Bank of England’s ever-important interest rate cut tomorrow and is set to weigh on the Monetary Policy Committee.

A cut looks to be on the cards – with CityAM’s own shadow MPC calling for interest rates to be slashed.

But the final call could once more lie with Andrew Bailey to play decider between the doves and hawks.

In the last meeting, Bailey said he would wait for more economics data to be published before making a judgment on whether to cut interest rates, adding to the significance of Wednesday’s inflation data release. 

Since then, it has been revealed the UK economy contracted in October while surveys have pointed to a continued decline in the jobs market. 

The Budget has also since taken place, with deputy governor Clare Lombardelli suggesting that Rachel Reeves’ policies will strip 0.5 percentage points off headline inflation from April. 

We’ll be bringing you the latest news and analysis of the morning agenda.

In the meantime, here’s a few of our top stories from yesterday:

• A Reform government would partially nationalise Rolls-Royce
• Public sector jobs and pay increase while private sector struggles
• Monzo snaps up UK mortgage broker in first major acquisition 
• FCA boss: Treasury and MPs slowing down deregulation push
• Fowl play: Morrisons loses £17m VAT battle over rotisserie chickens